Indiana Weekly Legislative Update - 1/24/25
House
On Tuesday, the House Republicans revealed their long-awaited agenda for the 2025 Legislative Session. Their agenda contains multiple bills focused on fiscal responsibility, reducing government regulations, lowering the cost of living, and strengthening our communities. You can read more about their legislative priorities here.
- In their efforts to be fiscally responsible, House leaders confirmed that the yet-to-be-released HB 1001 State Budget (Rep. Jeff Thompson, R-Lizton) would be a fiscally balanced budget and that they would prioritize budget items that improve the lives of those living in the state.
- HB 1002, Various education matters (Rep. Bob Behning, R-Indianapolis) seeks to loosen regulatory burdens on the department of education, and public schools. This bill eliminates outdated language and would eliminate around 60,000 words of code, helping to reduce costs and establish more local control of the K-12education system.
- HB 1003, Health matters (Rep. Brad Barrett, R-Richmond) is an effort to improve transparency in healthcare pricing and billing. It also gives patients an increased say in their treatment options and gives them easier access to their health data.
- HB 1004, Nonprofit hospitals (Rep. Martin Carbaugh, R-Fort Wayne) is another priority bill that attempts to lower the cost of healthcare services. This bill has several provisions that seek to ensure that nonprofit hospitals focus on delivering services without making outrageous profits.
- HB 1005, Housing and Building Matters (Rep. Doug Miller, R-Elkhart) hopes to combat the lack of housing options available to Hoosiers. HB 1005 seeks to finance infrastructure projects that support residential housing. This will be done by expanding the Residential Housing Infrastructure Assistance Program (RIF).
- HB 1006, Prosecutors (Rep. Chris Jeter, R-Fishers) targets public safety by providing more funding to prosecutors via a newly established special prosecutor unit, a prosecutor review board, as well as the public prosecution fund. The bill also establishes guidelines under which counties may be eligible for reimbursement for prosecution expenditures.
- HB 1007, Energy Generation Resources (Rep. Ed Soliday, R-Valparaiso) addresses the rising need for electricity due to the upturn of the energy economy while also modernizing the grid and reducing costs through the encouragement and upkeep of small modular reactors.
- HB 1008, Indiana-Illinois boundary adjustment commission (Speaker Todd Huston, R-Fishers) garnered significant media attention this week. This bill would establish the Indiana-Illinois Boundary Adjustment Commission. The commission would consist of five members appointed by the governor, as well as five members appointed under Illinois law. The duty of the commission would be to evaluate the possibility of and make a recommendation regarding an adjustment to the states’ shared border. Under the proposal, Indiana would welcome a total of thirty-three Illinois counties that wish to secede from the state to be part of Indiana, rather than becoming their own state.
On Tuesday, the House Ways and Means Committee continued budget hearings as they work to craft the state’s biennial budget. During these hearings, committee members hear presentations and proposals from various state agencies and related entities regarding their funding requests for the 2026 and 2027 fiscal years.
Also on Tuesday, a caucus was held to fill the vacant seat in House District 42 following the resignation of Rep. Alan Morrison (R-Brazil) to join the Braun administration as head of the Dept. of Natural Resources. The caucus selected former Vermillion Co. Commissioner and current Vermillion Co. GOP Chair Tim Yocum (R-Clinton) after the fifth round of voting. Read more here.
On Wednesday, the House Education Committee heard testimony on HB 1002, Various education matters (Rep. Bob Behning, R-Indianapolis) the first of the House agenda bills to be heard in its respective committee. This robust, 138-page agenda bill seeks to remove regulatory burdens for the Department of Education including certain outdated or expired requirements, provisions, and grants. During the committee, Rep. Behning explained how this bill was the result of collaboration with teachers and noted that the removal of this language will help teachers focus on teaching rather than administrative processes. The committee heard extensive testimony on the bill and will consider amendments during next week’s meeting.
Senate
Senate Republicans also revealed their agenda bills for the 2025 Legislative Session this week. This session, the caucus will prioritize property tax reform, restraining Medicaid costs, lowering health care costs, responsible management of water resources and fiscal integrity and contract accountability. Their agenda bills are listed below:
- SB 1, Property tax relief (Sen. Travis Holdman, R-Markle) updates the homestead deduction to 60% of assessed value (AV) for homes over $125,000 and $48,000 plus 60% of remaining AV for homes at or below $125,000, while eliminating the supplemental deduction. It also requires the Department of Local Government Finance to create a property tax transparency portal for comparing liabilities and submitting feedback, in addition to other technical updates.
- SB 2, Medicaid matters (Sen. Ryan Mishler, R-Bremen) requires the Office of the Secretary of Family and Social Services to report Medicaid data to the Oversight Committee, review eligibility data, and set hospital standards for presumptive eligibility with appeals and enforcement. SB 2 also defines Healthy Indiana Plan requirements and requires a Medicaid state plan amendment to rescind Medicaid expansion.
- SB 3, Fiduciary duty in health plan administration (Sen. Justin Busch, R-Fort Wayne) provides that any third-party administrator, pharmacy benefit manager, employee benefit consultant, or insurance producer acting on behalf of a plan sponsor owes a fiduciary duty to the plan sponsor.
- SB 4, Water matters (Sen. Eric Koch, R-Bedford) prohibits building, operating, buying, selling, or leasing long-haul water pipelines unless a water utility gets a certificate of public convenience and necessity from the Indiana Utility Regulatory Commission. SB 4 requires a permit to transfer water outside a basin from the DNR and allows the DNR to issue civil penalties for those transfer permit violations.
- SB 5, State fiscal and contracting matters. (Sen. Scott Baldwin, R-Noblesville) allows state agencies to use AI for budget projections. Requires these agencies to report federal fund requests, submit contracts to a transparency website, and provide quarterly updates. The Department of Administration must handle contractor complaints, disqualify repeat offenders, and include specific terms in contracts over $500,000. Budget committee review is required for large contract changes or extensions.
- SB 6, Property tax deferral program (Sen. Linda Rogers, R-Granger), SB 7, Agricultural land assessment (Sen. Brian Buchanan, R-Lebanon), SB 8, School levy referenda (Sen. Buchanan), & SB 9, Maximum levy growth quotient (Sen. Scott Baldwin, R-Noblesville) are all focused on property taxes and local government financing, dealing with several aspects of property tax management, including deferral programs, agricultural land valuation, the regulation of school tax referendums, and the calculation and standardization of property tax levy growth. These bills streamline property tax processes, provide financial flexibility, and enhance transparency in local government and school corporation funding.
- SB 10, Voter registration (Sen. Blake Doriot, R-New Paris) excludes educational institution IDs as valid proof of identification, mandates voter list maintenance for inactive voters, enhances death record sharing with voter offices, and removes the requirement for BMV employees to ask about voter registration updates.
On Thursday, the Senate Appropriations Committee met to hear SB 2, Medicaid matters (Sen. Ryan Mishler, R-Bremen, et al.). The committee heard extensive testimony and committee members asked a number of questions to the various experts and community members present. Chairman Mishler noted that the goal is to lower waitlists for Medicaid and that the committee will take time to review and suggest amendments. SB 377, Funding for regional economic development (Sen. Greg Goode, R-Terre Haute) was moved to next week's meeting.
Another Senate agenda bill, SB 4, Water Matters (Sen. Eric Koch, R-Bedford), was heard on Thursday in the Senate Utilities Committee. They heard testimony regarding the new proposed regulations and received mostly positive feedback. Chairman Koch tabled the bill until next week’s meeting to work on amendments.
The Senate Corrections and Criminal Law Committee met and discussed SB 74, Extension of lifeline law immunity (Sen. Ron Alting, R-Lafayette), which if enacted, will give protection from prosecution to underage individuals who have a medical emergency from drinking too much alcohol. Following extensive testimony from university students and stakeholders, the committee unanimously decided to recommend the bill for second reading.
The Governor’s Office
On Monday, January 13, Governor Mike Braun, Lieutenant Governor Micah Beckwith, and Attorney General Todd Rokita were sworn into office. Governor Braun indicated a readiness to get to work and outlined a few of his key legislative priorities. Braun expressed his intention to combat the rising healthcare costs, lower property taxes, and improve the education system through the adoption of universal school choice policies. His full speech can be read here.
Yesterday, the State Budget Agency presented Governor Braun’s preferred budget for the next fiscal period. The $46 billion two-year budget was largely in line with Braun’s agenda and manages to keep a structural budget surplus while maintaining an AAA credit rating. The budget’s largest ticket items include education, health and human services, and public safety. The proposal reduces over $700 million in government spending (primarily through asking state agencies to reduce their budgets by at least 5% each), while providing an estimated combined $696 million in various tax reliefs, including the elimination of taxes on tips. The budget includes a funding increase for K-12 Schools, and a 2% increase in tuition support each year. The budget also deals with improving public safety with lines dedicated to school safety, state police salaries and an investment in the National Guard. The governor also plans to accommodate the entirety of the state’s Medicaid obligations. The agency closed their presentation by affirming that this budget is structurally balanced, even in the face of unprecedented growth in Medicaid and cooling economic growth, while maintaining a healthy surplus. You can read more about the proposed budget here. We have also linked a few articles below:
- Braun proposes 2% school funding hike, sales tax holidays
- Governor’s budget would trim 5% across agencies
On Wednesday, Governor Braun signed nine executive orders that streamline government and cut red tape. A full breakdown of the orders follows. The press release by the governor’s team can be found here.
- EO 2025-11 – Reorganize Executive Orders: This executive order assigns various departments such as the Governor’s General Counsel, and the Indiana Office of Technology to create a new page on the state website, listing all active executive orders that are currently active. This new page must be updated quarterly by the General Counsel to make sure that the list is up to date, and all executive orders present are still active.
- EO 2025-12 – Budget Discipline: To keep a fiscally responsible and balanced budget, the Office of Management and Budget (OMB) must take action to make sure that agencies comply with the need for a balanced budget. To encourage this, OMB is to implement incentives including recognition and performance-based funding for those exceeding expectations. This includes methods such as a pause to pay increases and bonuses, as well as hiring freezes for departments determined to be non-essential. The OMB is to keep track of key performance indicators (KPIs) to determine the impact of the changes in these departments.
- EO 2025-13 – Key Performance Metrics aligned to outcomes that impact Hoosiers: This executive order is targeted at improving government efficiency through the use of key performance metrics. OMB is tasked with creating these metrics, putting them into place, and creating a dashboard to be used by the Governor’s Cabinet to see the data collected. This dashboard should include information on the fiscal impacts of each department, as well as the efficiency of their work, and other performance indicators.
- EO 2025-14 – Replacing DEI in Government with MEI: Merit, Excellence, and Innovation: This order aligns state government practices with the United States Supreme Court decision Students for Fair Admissions, Inc. V President and Fellows of Harvard College. Thus, this order prohibits state agencies from using resources to support diversity, equity and inclusion – DEI initiatives that grant preferential treatment based on race, color, ethnicity or national origin. Furthermore, State agencies must review their existing DEI-related positions, programs and activities for compliance with the aforementioned ruling.
- EO 2025-15 – Removing Degree Requirements for State jobs: This order reduces educational barriers in state jobs. State agencies are directed to prioritize skills-based hiring practices, focusing on relevant certifications, military services, and experiences. This initiative is designed to address workforce shortages, support economic growth and broaden career pathways for more Hoosiers while maintaining compliance with legal and professional standards.
- EO 2025-16 – Return to Work: As the title suggests, this executive order directs state agencies to restore their workforce to pre-pandemic operations. While remote work was essential during the pandemic, this work is now being reassessed to align with ensuring accountability, responsiveness, and efficient service. Therefore, most state employees will return to their assigned offices or field locations, with limited exceptions based on agency needs and job functions. Policies for remote work exceptions will be developed to ensure effective government operations while prioritizing taxpayer accountability.
- EO 2025-17 – Reducing Regulation / Regulatory Sunset: Governor Braun has ordered all state agencies to review existing rules for relevance, cost-effectiveness, and alignment with similar regulations in neighboring states. Agencies must evaluate outdated rules, consider less costly alternatives, and assess public feedback and technological changes. Rules that are unchanged for over eight years should also be integrated into state law unless there is a compelling justification. Furthermore, agencies are also tasked with achieving a 25% reduction in regulatory requirements by 2029 and streamlining approval processes to expedite their decisions.
- EO 2025-18 – Professional Licensing Deregulation: This executive order is targeted at reducing excessive degree, training, and background check requirements by July 1, 2025. These changes include reducing requirements listed above, prioritizing apprenticeships over formal education, and simplifying application processes. Agencies are encouraged to recognize out-of-state licenses, provide provisional licenses, and expedite licensing for military personnel and their spouses.
- EO-25-19 Implementation of StateRAMP: Recognizing the cybersecurity risks of cloud computing, this executive order mandates the implementation of a Risk and Authorization Management Program (RAMP) within nine months to enhance security and reduce costs. The Indiana Office of Technology (IOT) will oversee this policy, requiring state agencies and entities to conduct risk assessments, monitor systems, and ensure vendors comply. All new and renewed contracts must align with RAMP, include security provisions, and provide quarterly compliance evidence via independent verification. This order takes effect immediately to protect sensitive data and critical systems.
Additional executive orders were signed creating the Governor’s Cabinet and the various positions within the Cabinet. Those executive orders, as well as the ones outlined above, can all be viewed here.